The Central Bank of Nigeria (CBN) has introduced a new policy pegging daily transactions by Point of Sale (PoS) agents to N1.2 million.
The directive, announced in a circular titled “Circular on Cash-Out Limits for Agent Banking Transactions” on Tuesday, is part of the apex bank’s broader efforts to promote a cashless economy.
The circular signed by Oladimeji Yisa Taiwo on behalf of the Director of the Payments System Management Department outlined measures to enhance the use of electronic payment channels in agency banking operations. According to the CBN, these interventions are designed to support financial inclusion and streamline agent banking services in the country.
The new guidelines include a cap on cash withdrawals per customer, regardless of channel, at N500,000 per week. Furthermore, agent banking terminals are now subject to a daily maximum transaction cash-out limit of N100,000 per customer, capping the agent’s total daily cumulative cash-out transactions at N1.2 million.
The CBN also mandated that all agent terminals be linked to a Payment Terminal Service Aggregator (PTSA) while daily transaction reports, including details of withdrawals, transaction limits, and balances in agent float accounts, be electronically submitted to the Nigeria Interbank Settlement System (NIBSS).
The apex bank stated that a standardised reporting template would be provided to agent banking operators.
Agent banking activities must now be distinctly separated from merchant operations, with agents required to use the approved Agent Code 6010 for all transactions related to agent banking.
Agency banking has been a key driver of financial inclusion in Nigeria, enabling individuals in underserved areas to access financial services. According to the Nigerian Financial Services Report, PoS and mobile money services are critical tools for providing financial access to unbanked populations. As of July 2024, the Nigeria Interbank Settlement System Plc reported that 3.05 million PoS terminals were deployed nationwide, with 4.06 million registered PoS terminals.
